Immediately after the acquisition referred to above, the Company owns and controls, directly or indirectly, 8,117,761 common shares of SVII.

The Company is private company which is controlled by Reuben Klein. The Company acquired ownership over common shares of Strategic Vista International Inc. ("SVII") pursuant to a reorganization effective January 1, 2005 (the "Reorganization"). Specifically, the following transactions gave rise to the Company's acquisition of ownership of the SVII shares:

a) Sonigem Products Inc. ("Sonigem") and Magnasonic Canada Corp. ("MCC") underwent a statutory amalgamation under the Business Corporations Act (Ontario). Prior to the amalgamation, Sonigem was the owner of 3,000,000 common shares of SVII, and MCC was the owner of 2,486,000 common shares of SVII. The resultant amalgamated corporation thereby became the owner of a total of 5,486,000 common shares of SVII. The name of the amalgamated corporation is Magnasonic Canada Corp. ("MCC2").

b) Following the amalgamation referred to in (a), MCC2 entered into an Asset Purchase Agreement effective January 1, 2005 between MCC2, the Company, Eli Klein Holdings Inc. ("Elico") and Bernard Klein Holdings Ltd. ("Bernardco"), pursuant to which all of the SVII shares held by MCC2 were sold in the amount of 1,828,666 SVII common shares to the Offeror, 1,828,666 to Reubenco and 1,828,668 to Bernardco.

c) 1080583 Ontario Inc. owned 150,000 common shares in SVII prior to January 1, 2005. As a part of the Reorganization, the Company, Bernardco, Elico and 1080583 Ontario Inc. entered into an Asset Purchase Agreement effective January 1, 2005, pursuant to which the Company, Bernardco and Elico each acquired one third (1/3) of 1080583 Ontario Inc.'s holdings in SVII, each such one third (1/3) interest being 50,000 common shares of SVII.

d) In total, pursuant to the Reorganization, the Company acquired a total of 1,878,666 SVII common shares.

Reuben Klein acts jointly or in concert with the Company.

Pursuant to an agreement between Bernard Klein, Reuben Klein and Eli Klein, the three of them act jointly with respect to the voting shares of SVII controlled by any of them (the "Voting Agreement"). Following is a description of the Klein family ownership of SVII common shares, and as a result of the Voting Agreement all such shares are deemed to be controlled by each of Eli Klein, Bernard Klein and Reuben Klein acting alone.

f) Prior to the Reorganization, MCC (a private company which is controlled by Bernard Klein, Reuben Klein and Eli Klein) owned 2,486,000 SVII common shares.

g) Prior to the Reorganization, Sonigem Products Inc. (a private company controlled by MCC prior to the Reorganization) owned 3,000,000 SVII common shares.

Therefore, the number of SVII common shares that Reuben Klein held control or direction over prior to the Reorganization in the aggregate was 8,117,761.

Following the Reorganization, Reuben Klein maintained direction and control over the aforementioned 8,117,761 SVII common shares pursuant to the Voting Agreement. The Company obtained direct ownership of 1,878,666 SVII common shares pursuant to the Reorganization, as set out in 2, above.

The total number of SVII common shares that the Company, acting jointly with Reuben Klein, directs or controls following the Reorganization, is therefore identical to that which it controlled prior to the Reorganization, being 8,117,761.

For the purposes of the Company and persons acting jointly or in concert with the Company, the Reorganization resulted in changes to legal ownership of SVII common shares while there was no change in control over such shares.

The transactions giving rise to this disclosure were carried out privately.